Money Guide Ireland

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Whilst all other lenders are dropping mortgage rates (well those under the Irish Government Guarantee) – one lender in Ireland has just put rates up. Even though we have just had another ECB rate drop to 1% – Halifax has increased rates on all it’s variable and fixed rate mortgages for new borrowers by around 0.8% .
They did get some bad media coverage in the UK because after being given millions of UK taxpayers money they were giving lower rates on mortgages in Ireland than back in the UK. This must be a factor in the recent increases.
Halifax have been one of the lenders with the  lowest mortgage rates in Ireland – but not any more. See our Mortgage Best Buys Here. (More drops expected soon by some lenders)

There has been a sudden increase in property owners offering “Rent to Buy” schemes all over Ireland.

Is this just a marketing ploy to rent houses that property owners can’t sell or is it a viable option for first time buyers?

We’re seeing more of these rent to buy offers because there’s a growing backlog of unsold homes and prices are stagnant or falling in most parts of the country. That has left some owners – particularly investors and developers – with a problem. So now they’re trying to rent them.

Sellers can probably benefit from rent-to-buy agreements more than buyers. Not only can the seller lock in a price before property values plunge further, but they also collect market-rate rent until the closing.
It is not unheard of for developers and agents to use a purchase option to justify higher rents and lock you into a purchase price that’s higher than those of  comparable houses.

The many schemes that go under the banner of rent-to-buy vary dramatically, and the small print can change from one company or developer to another.
Offering to credit part of each month’s rent toward the purchase price of the home is the key element of any “Rent to Buy” deal.
They also often require you to pay a deposit. It is non refundable, but it is usually also credited toward your deposit.

The date at which the agreement expires varies by contract but is typically between two and five years. At that point, the renter can choose to buy the home at the original listed price minus the equity he or she has built. If not, then the homeowner has the option to evict them and keep all payments.

Making a rent-to-buy agreement in an area where house values are still dropping can be risky. That’s because you’re negotiating the purchase price for a property now that you may not actually buy for more than a year. That could easily result in overbidding. The monthly rent should also be on par for the market. With rents declining, in many places, you could end up paying more than the market rent over the next few years.
If property values were increasing – Rent to Buy would look to be a good option – but would many owners be offering such schemes if property prices were going up? I doubt it.

Always obtain independent legal advice before entering into a Rent to Buy contract. Do not accept legal advice from the vendor the agent or the vendor’s solicitor.

Investec is a specialist bank founded in South Africa in 1974 It  has expanded through a combination of  organic growth and a series of  acquisitions in South Africa, the United Kingdom and other countries.
Investec came to Ireland in 2000 when they acquired Gandon Capital Markets. Investec Ireland now employs a team of over 100 specialists focusing on private banking, capital markets and investment banking for a domestic and international client base.
For the individual customer – Investec have a few options for savings accounts – the highest rate they offer currently (May 2009) is 4.5% on the 12 month fixed deposit account  with a minimum deposit of 20,000 euro. See how they fare in our Best Buys on 12 month Fixed rate deposits.

Deposits with Investec are covered by the UK FSA (Amounts up to £50k are guaranteed by the FSA – which is about 56k Euro)

Contact Details for Investec Ireland

Address :

The Harcourt Building
Harcourt Street
Dublin 2
Web http://www.investec.com/en_ie/#home.html

Tel: 353 1 421 0000
Fax: 353 1 421 0500

As was widely expected the European Central Bank (ECB)  cut interest rates today to an all time low of just  1 per cent, (from 1.25%) . The new rate comes into effect on May 13th – but how many mortgage lenders will pass this latest cut on to variable mortgages?
People on tracker mortgages will see  monthly mortgage repayments on a €200,000 tracker mortgage over 25 years fall €22 from   €776 to  €754.

Brian Lenihan , Finance Minister, has named Brendan McDonagh, a director at the National Treasury Management Agency (NTMA), as interim managing director of  the National Asset Management Agency (Nama).

Mr McDonagh, who is director of finance, technology and risk at the NTMA, has been assisting on the development of the Nama plan. The Minister said Mr McDonagh would be assisted by “a high-level advisory committee to be named shortly”

Mr McDonagh’s appointment is likely to be confirmed when legislation establishing Nama comes into effect later this summer. The board of the agency is expected to be chaired by an independent figure known internationally.

Originally from Killorglin, Co Kerry, Mr McDonagh (41) was NTMA financial controller from 1998 to 2002.